A/S Schouw & Co, which owns 4 million shares in Vestas Wind Systems A/S, rose in Copenhagen trading after Nordea Equity Research raised its price estimate for the company, citing higher value of its investments.
Schouw rose as much as 2.1 percent to 199 kroner and also traded at that price at 9:15 a.m. in the Danish capital. Volume was 21 percent of the three-month daily average.
Schouw’s stake in Vestas, which equals 1.96 percent of the wind turbine-maker’s market capital, has tripled in value since the start of February as equity investors bet Vestas is succeeding with its restructuring plans. Schouw’s fully-owned fish feed unit BioMar A/S has also gained in value as higher profitability offsets lower sales volumes, according to a note published by Nordea today.
“We lift our target price to 240 kroner per share from 205 kroner, driven by BioMar and Vestas,” Dan Kirk Wejse, an analyst with Nordea in Copenhagen, said in the note. Wejse repeated a buy recommendation on Schouw shares.
Nordea also said that the Aarhus, Denmark-based company may use proceeds from last year’s 110 million-euro ($145 million) sale of smoke machine maker unit Martin Professional to buy back own stock,
“We believe the main focus is on acquisitions related to the existing businesses,” Nordea’s Wejse said. “However, if no large acquisitions are made soon, we could see Schouw initiating a share buyback program.”